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2016 (1) TMI 198 - AT - Central ExciseValuation - appellant had discharged the Central Excise duty on the physician samples cleared by them on the assessable value arrived at by the provisions of Section 4 of Central Excise Act, 1944 - Held that:- Issue is now settled against the appellants and the appellant has to discharge the duty liability on the physician samples by taking a value proportionate to the MRP of the sale pack of the medicaments. We are of the considered view that the contention raised by the learned representative of the appellant regarding no interest liability arises is not correct and the appellant has to discharge the interest liability on the amount of duty which is confirmed by the lower authorities and upheld by to that extent, the appeal filed by the appellant is rejected. Appellants cleared the physician samples on payment of duty by ascertaining the assessable value under Section 4 of the Central Excise Act, 1944 and they filed monthly returns with the lower authorities for the relevant period in question. We find that the invocation of Rule 25 of the Central Excise Rule is incorrect as the said Rule mandate penalty can be imposed only if there is a violation of the provisions of Rule which is not the case in here as the discharge of duty on the physician samples on an assessable value proportionate to MRP of the park was in dispute and decided by the Hon'ble High Court of Bombay in the case of Indian Drug Manufactures Association on 28/09/2006. If that be so, the appellants may have entertained a bonafide belief that the assessable value for discharging duty liability on the physician samples was correctly arrived at by them as per Section 4 of the Central Excise Act, 1944. Confirmation of demand with interest is upheld and penalty imposed on the appellant is set aside - Decided partly in favor of assessee.
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